Domar aggregation

Domar aggregation

Domar aggregation is the principle that the growth rate of an aggregate is the weighted average of the growth rates of its components, where each component is weighted by the share of the aggregate it makes up. The idea comes up in the context of national accounts and national statistics.[1]

This methodology was introduced by Evsey Domar, a Polish-American economist, in 1961, another economist Charles Hulten later developed this theory and showed its implementaion.

  1. ^ Econterms Online Glossary of Research Economics

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